Deck 3: Managerial Decision Making

Question 1

Ideas that have been seen or tried before are known as ready-made solutions.

Answer 1

True
Explanation: Decision makers who search for ready-made solutions use ideas they have tried before or follow the advice of others who have faced similar problems.

Question 2

Decision makers should presume that with a carefully made decision,things will go smoothly during implementation.

Answer 2

False
Explanation: Decision makers should presume that things will not go smoothly during implementation.It is useful to take a little extra time to identify potential problems and opportunities associated with implementation.

Question 3

When satisficing,individuals compare their choices against their goals,not against other options.

Answer 3

True
Explanation: Satisficing is choosing the first option that is minimally acceptable or adequate.When satisficing,individuals compare their choices against their goals,not against other options.The search for alternatives stops at the first one that is okay.

Question 4

Programmed decisions are useful when there is no predetermined structure on which to rely.

Question 5

Fundamental to evaluating an alternative is to predict the consequences that will occur if the various options are put into effect.

Question 6

Maximizing means achieving the best possible balance among several goals.

Question 7

A school principal faces conflict when she must decide whether to give all staff an 8 percent pay cut or lay off four full-time employees.

Question 8

Only after a decision is made and implemented,the contingency plans should be developed.

Question 9

Evaluating the decision is always useful,whether the outcome is positive or negative.

Question 10

Managers often avoid taking action when faced with challenges.

Question 11

Sara,a warehouse manager,needed a fast solution when an employee asked for a day off for the following week when the whole crew was supposed to be doing inventory.For her,a ready-made alternative will be quicker than designing a custom-made solution.

Question 12

The first stage of the decision-making process requires the decision maker to generate alternatives.

Question 13

Most of the problems that managers face are structured,and this makes the decision process easier because there is a procedure to follow already.

Question 14

Risk exists when the probability of an action being successful is less than 100 percent and losses may occur.

Question 15

The "problem" in decision making may actually be an opportunity that needs to be exploited.

Question 16

Managers use satisficing to achieve the best possible outcome.

Question 17

Important,difficult decisions tend to be nonprogrammed,and they demand creative approaches.

Question 18

Reggie is the owner of a new bike shop and must decide how much to withhold from employee paychecks as income tax.This is an example of a nonprogrammed decision.

Question 19

Vigilance occurs when decision makers carefully and conscientiously execute all six stages of decision making.

Question 20

Conflict exists when a manager must consider opposing pressures from different sources.

Question 21

One advantage of using a group for decision making is groupthink.

Question 22

The illusion of control is a belief that one can influence events even when one has no control over what will happen.

Question 23

Complimenting one another and telling stories are examples of behaviors that can make brainstorming less effective.

Question 24

Barriers to effective decision making include psychological biases,time pressures,and social realities.

Question 25

Framing effects refer to a decision bias influenced by the way in which a problem or decision alternative is phrased or presented.

Question 26

Cognitive conflict is differences in perspectives or judgments about issues.

Question 27

When managed effectively,a crisis can have benefits.

Question 28

The most constructive type of conflict is affective conflict.

Question 29

Bounded rationality is a less-than-perfect form of rationality in which decision makers cannot be perfectly rational because decisions are complex and complete information is unavailable or cannot be fully processed.

Question 30

One potential advantage of using a group for decision making is that people are likely to be more committed to the decision.

Question 31

The confrontational model of decision making arises when people disagree on goals or compete with one another for resources.

Question 32

Following all six stages of the decision-making process guarantees successful decisions.

Question 33

In brainstorming,group members generate as many ideas about a problem as they can while simultaneously critiquing them.

Question 34

The garbage can model of decision making occurs when people aren't sure of their goals,or disagree about the goals,and likewise are unsure of or in disagreement about what to do.

Question 35

The three requirements for effective group decision making are an appropriate leadership style,the constructive use of disagreement and conflict,and the enhancement of creativity.

Question 36

The most fundamental unit of value in the creativity revolution is ideas.

Question 37

If enough time is available,groups typically make better decisions than most individuals acting alone.

Question 38

In goal displacement,a decision-making group loses sight of its original goal and a new,less important goal emerges.

Question 39

In almost every business situation,the quality of the decision is far more important than the speed at which the decision is made.

Question 40

The incremental model of decision making occurs when managers make small decisions and move cautiously toward a bigger solution.

Question 41

Nigel,a manager at Montlucon Eyewear,needed to purchase a new secure display case for his most expensive sunglasses.He wanted one that was high in quality and security,yet low in price.After evaluating the options,he chooses a case that is neither the highest quality available nor the lowest in price available,but having a good combination of attributes.In this case,Nigel's choice best illustrates _____.

A) the garbage can model
B) satisficing
C) optimizing
D) the coalitional model
E) bounded rationality

Question 42

Jacob,a marketing manager,has to layoff either George or Tom,marketing executives,due to the downsizing process that's going on in the organization.However,Jacob cannot decide whom to layoff,since he doesn't want to dismiss both of them.In this case,Jacob is having a difficult time making a decision due to experiencing _____ conflict.

A) interdependence
B) organizational
C) cognitive
D) psychological
E) affective

Question 43

Ari,a federal government employee,works in acquisition and procurement.Federal policies require that in contracting with suppliers,at least three bids must be received and the lowest bid that meets specifications will be accepted.In this case,Ari is dealing with a(n)_____.

A) cognitive conflict
B) programmed decision
C) affective conflict
D) nonprogrammed decision
E) unstructured problem

Question 44

In an ideal decision-making process,the initial step is to:

A) select an alternative.
B) evaluate the decision.
C) challenge the status quo.
D) generate alternatives.
E) identify the problem.

Question 45

_____ requires searching thoroughly for a complete range of alternatives,carefully assessing each alternative,comparing one to another,and then choosing or creating the very best.

A) Benchmarking
B) Maximizing
C) Framing
D) Satisficing
E) Optimizing

Question 46

Important,difficult decisions that require creative approaches tend to be:

A) vigilant decisions.
B) programmed decisions.
C) non-vigilant decisions.
D) nonprogrammed decisions.
E) structured decisions.

Question 47

Which of the following decisions is likely to be a nonprogrammed decision?

A) Decisions with certainty regarding cause-and-effect relationship
B) Decisions concerning diversification into new products and markets
C) Decisions regarding rules and definite procedures
D) Decisions concerning merit system for promotion of state employees
E) Decisions that depend on numerical computations

Question 48

Managers who optimize their decisions will attempt to:

A) choose the first,minimally acceptable alternative.
B) fix on the decision that is fastest to make.
C) zero in on the least expensive option available in the market.
D) decide on whatever produces the least challenge or conflict.
E) achieve the best possible balance among several goals.

Question 49

Once a problem is identified and properly diagnosed,the next phase in the decision-making process involves _____.

A) evaluating alternatives
B) evaluating consequences
C) generating information
D) implementing the decision
E) generating alternative solutions

Question 50

The manager of the Capitol Restaurant noticed a tremendous decrease in the number of evening customers.He promptly ordered the chef to rewrite the evening menu.Customer feedback later indicated that the problem had not been the menu but poor service from the wait staff.In this scenario,to try and solve the problem,the manager should have therefore first tried to _____.

A) generate alternate solutions
B) hire more qualified employees
C) identify the problem
D) reduce the price of all products
E) spend more on marketing and advertisement

Question 51

The state that exists when the probability of success is less than 100 percent and losses may occur is called _____.

A) conflict
B) probability analysis
C) risk
D) certainty
E) policy formulation

Question 52

A firm's decision regarding diversification into new products and markets is a(n)example of a _____ decision.

A) routine
B) programmed
C) cognitive
D) nonprogrammed
E) noncognitive

Question 53

When a solution is specifically designed for a particular problem or set of problems,it is referred to as _____.

A) groupthink
B) a programmed decision
C) a ready-made solution
D) a contingency plan
E) a custom-made solution

Question 54

Victor,an administrative assistant in accounting,orders office supplies biweekly;today he needs pens,sticky notes,and staples.He looks at the office supply catalog and because the consequences are not huge,quickly picks a selection for each that is priced acceptably.In this scenario,Victor is using _____.

A) management by exception
B) optimizing
C) satisficing
D) the garbage can model
E) maximizing

Question 55

Irena is the manager of Kiddy Couture,a clothing designing and manufacturing store.Irena knows that the economy greatly affects her business.Therefore,she is developing alternative courses of action for each of the four possible economic outcomes that may occur over the next four to six years.In this scenario,Irena is _____.

A) implementing a decision
B) generating contingency plans
C) making a programmed decision
D) engaging in satisficing
E) following the garbage can model

Question 56

_____ occurs when a manager is considering opposing pressures from different sources.

A) Conflict
B) Cooptation
C) Collusion
D) Satisficing
E) Groupthink

Question 57

Making a decision by accepting the first option that is minimally acceptable or adequate is referred to as _____.

A) optimizing
B) satisficing
C) maximizing
D) minimizing
E) framing

Question 58

Which of the following decisions is likely to be a programmed decision?

A) Decisions about diversification into new products and markets
B) Decisions with uncertainty regarding cause-and-effect relationships
C) Decisions about reorganization of state government agencies
D) Decisions regarding periodic reorders of inventory
E) Decisions involving the purchase of experimental equipment

Question 59

Which of the following is a characteristic of managerial decisions that contributes to the difficulty in making a decision?

A) Guaranteed success
B) Certainty
C) Conflict
D) Structure
E) Speed

Question 60

Alternative courses of action that can be implemented based on how the future unfolds are referred to as _____.

A) programmed decisions
B) contingency plans
C) ready-made solutions
D) satisficing plans
E) maximizing plans

Question 61

A phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus is known as _____.

A) goal displacement
B) domination
C) intuition
D) groupthink
E) satisficing

Question 62

_____ is an advantage of using a group for decision making.

A) Intellectual stimulation
B) Domination by one member
C) Groupthink
D) Satisficing
E) Goal displacement

Question 63

Which of the following is a disadvantage of group decisions?

A) The decisions tend to be satisficing.
B) There is a much smaller pool of information.
C) The employees are not intellectually stimulated.
D) There are multiple perspectives to the decision.
E) There is more transparency among employees.

Question 64

Real-time information is information that:

A) is obtained with little or no delay.
B) is based only on past performance.
C) focuses on futuristic forecasts.
D) is based on adjusted predictions.
E) is discounted for the futurE.

Question 65

Negative feedback received during the final evaluation of the decision either means that implementation will require more time or _____.

A) the problem cannot be solved
B) more financing is required to implement the changes
C) the manager is not capable of rational decisions
D) the decision was a bad one
E) not enough resources were allocated to the problem

Question 66

Nicole,a manager at Purple Lotus Inc. ,was disappointed with her team's discussion regarding next year's marketing campaign.Adam,a fellow manager,pushed all his ideas through;they were good,but nobody else got a word in or had the opportunity to share.This group experienced _____.

A) vigilance
B) individual dominance
C) satisficing
D) intellectual stimulation
E) goal displacement

Question 67

Each morning,OfficeMax's CEO has a computer-based conference with all store managers.The previous day's data and challenges are discussed so that problems can be quickly and effectively resolved or even avoided.In this case,OfficeMax is utilizing _____ to retain a competitive edge.

A) social realities
B) real-time information
C) psychological biases
D) framing effects
E) nonprogrammed decisions

Question 68

Which of the following is a decision bias influenced by the way in which a problem or decision alternative is phrased or presented?

A) Groupthink
B) Satisficing
C) Goal displacement
D) Framing effects
E) Illusion of control

Question 69

Groups that operate under a condition known as groupthink are likely to be _____.

A) striving to stand out
B) strongly supportive of their opinions in meetings
C) ideal for brainstorming sessions
D) concerned with maintaining a positive team spirit
E) making better decisions than any other group

Question 70

Vigilance in decision making means the:

A) customer realizes increased value as a result of the decision.
B) manager has carefully completed all stages in the decision-making process.
C) manager has overdone the decision-making process.
D) employees have full control over the decision-making process.
E) employees have been monitored to see their reactions to the decision.

Question 71

Which of the following is the best example of a manager discounting the future?

A) A manager believing that he or she can control the outcome of any decision
B) A manager planning for the long-term stability of a company
C) A manager depending on programmed decisions for all issues
D) A manager framing the decision alternatives to influence selection
E) A manager focusing on quarterly profits instead of the long-term vision

Question 72

Illusion of control,discounting the future,and framing effects are all examples of _____.

A) social realities
B) psychological biases
C) goal displacement
D) vigilance
E) time pressures

Question 73

Allowing one person to control a discussion or decision is known as _____.

A) groupthink
B) devil's advocacy
C) individual dominance
D) vigilance
E) dialectic

Question 74

The psychological bias known as "illusion of control" refers to a belief that:

A) the employees will always agree with the decisions made by the manager.
B) one can influence events even when one has no control over what will happen.
C) employees do not have confidence in a manager's abilities.
D) one has no control and therefore does not put any effort into the decision.
E) managers' with wider spans of control tend to perform effectively.

Question 75

Discounting the future refers to:

A) valuing long-term benefits and costs more heavily than short-term benefits and costs.
B) overestimating the long-term effects of the decision.
C) underestimating the short-term effects of the decision.
D) valuing short-term benefits and costs more heavily than longer-term benefits and costs.
E) making quick decisions with whatever information is at hand.

Question 76

Jake Tree Farm in Kansas is looking for ways to be more environment-friendly.Managers interviewed frontline staff to get their opinions and ideas,and they invited everyone to participate in deciding which ideas to advance.Staff members were then aware of the various options and recognized the benefits and costs of each.In this scenario,involving the staff has helped the organization to _____.

A) dominate the discussion and reinforce the organizational structure
B) use groupthink to gain buy-in
C) please everyone completely
D) give the illusion of control
E) understand the decisions and be more committed to them

Question 77

Which of the following involves weighting short-term costs and benefits more heavily than longer-term costs and benefits?

A) Framing effects
B) Cognitive conflict
C) Illusion of control
D) Social realities
E) Discounting the future

Question 78

When a group accepts an alternative that seems to please the members of the group,but the group has not taken the time or effort to explore many options,the group has _____.

A) exercised groupthink
B) stimulated the intellects of its members
C) made an optimizing decision
D) exercised vigilance
E) participated in goal displacement

Question 79

When business managers fail to objectively evaluate the odds of success for their decisions and believe that they can influence the events that follow a decision,it is an example of which of the following psychological biases?

A) Illusion of control
B) Framing effects
C) Discounting the future
D) Time pressure
E) Social realities

Question 80

The final phase in the decision-making process is _____.

A) anticipating the results
B) implementing the solution
C) diagnosing remaining issues
D) criteria analysis
E) evaluating the decision